Judge denies hold on sale of Hofmann Forest

By Jannette Pippin, Halifax Media Services

Published: Friday, November 15, 2013 at 05:52 PM.

The prospectus also states that 10,000 acres could be used for development.

“The military base is expanding and the need for housing and other essentials will drive demand. The approximately 10,000 acres of land could be converted from timberland and have a potential value of $10,000 per acre.”

It mentions both commercial and housing development.

In announcing the purchase agreement, the university said the buyer is working with the Department of Defense on an easement to protect training needs in the area.

The prospectus states that the Department of Defense has been in preliminary talks with Hofmann Forest LLC regarding securing an easement on about 70,000 acres of the property and potential use of the forest. It states the Department of Defense has four alternatives for possible use of the property, from doing nothing to using the existing Deppe airstrip, building a new airstrip in the northern part of the property and setting up five tactical landing zones and training sites.

Onslow County officials said they will be giving the prospectus a close review of potential impacts, but also acknowledge the importance of Hofmann Forest to the military mission.

“We have just received the Hofmann Forest LLC prospectus. That given, we plan to thoroughly review the document and consult with our military counterparts regarding all possible impacts of actions described,” Onslow County spokesman Todd Lyman said in a prepared statement.

MAYSVILLE — Hofmann Forest may be in for big changes if the sale of the property proceeds.

Opponents of the sale say new information has come to light that suggests as much as 50,000 acres of woodlands could be converted to farmland and nearly 10,000 acres made available for new homes and commercial development.

“This confirms our worst fears that the sale could lead to disastrous environmental impacts and the loss of Hofmann Forest,” Fred Cubbage, an N.C. State University forestry professor and one of the plaintiffs in a lawsuit filed over the prospective sale of the property, told The Daily News of Jacksonville on Thursday.

A Wake County Superior Court judge this week denied a temporary injunction to block the sale of the nearly 80,000 acres of woodlands in Onslow and Jones counties.

A group of foresters, professors, conservationists and others concerned about potential environmental impacts to a working forest they say has served as the largest university research forest in the world, filed the lawsuit in September and had hoped to halt the impending sale while their case continues in court.

N.C. State University announced Oct. 29 that the Board of Trustees for The Endowment Fund of N.C. State University has agreed to terms for the sale of Hofmann Forest to an Illinois-based agribusinessman.

An agreement to buy the property for $150 million was signed by Jerry Walker, who runs the family-owned, multi-state agribusiness, Walker Ag Group, as managing member of Hofmann Forest LLC.

While the injunction effort failed, opponents said their efforts gained momentum not long after the court hearing.

Wednesday night, a day after the court hearing, plaintiffs anonymously received a copy of a prospectus prepared for Hofmann Forest LLC, apparently for potential investors, which details possible plans for the property. Cubbage said the document contradicts claims that Hofmann would remain a working forest and that the sale would result in little environmental impact.

The prospectus identifies seven “highest and best uses” for the property. Timber, agriculture conversion, development and the selling of development rights are the four main uses; but it also notes uses such as mining and dirt harvesting.

The document notes the potential benefits for agriculture use on a large scale.

“With today’s global grain shortage, the type of virgin, organic soil found in the Hofmann Forest is as a premium,” it states. “After reserving roughly 9,000 acres for development, the forest would theoretically have 70,000 acres to convert to agricultural uses. Due to numerous mitigating factors, such as wetland areas, one could conceivably convert 50,000 to 60,000 acres to agricultural land.”

Cubbage said that would adversely change the nature of the property, tearing down woodlands that serve as habitat to species such as black bear and damaging water quality from increased erosion and polluted runoff.

“The document provides clear evidence that there would be large adverse environmental effects on water and wildlife,” he said.

The prospectus also states that 10,000 acres could be used for development.

“The military base is expanding and the need for housing and other essentials will drive demand. The approximately 10,000 acres of land could be converted from timberland and have a potential value of $10,000 per acre.”

It mentions both commercial and housing development.

In announcing the purchase agreement, the university said the buyer is working with the Department of Defense on an easement to protect training needs in the area.

The prospectus states that the Department of Defense has been in preliminary talks with Hofmann Forest LLC regarding securing an easement on about 70,000 acres of the property and potential use of the forest. It states the Department of Defense has four alternatives for possible use of the property, from doing nothing to using the existing Deppe airstrip, building a new airstrip in the northern part of the property and setting up five tactical landing zones and training sites.

Onslow County officials said they will be giving the prospectus a close review of potential impacts, but also acknowledge the importance of Hofmann Forest to the military mission.

“We have just received the Hofmann Forest LLC prospectus. That given, we plan to thoroughly review the document and consult with our military counterparts regarding all possible impacts of actions described,” Onslow County spokesman Todd Lyman said in a prepared statement.

“Nevertheless, we continue to emphasize that the value of Hofmann Forest to the region, the State of North Carolina and national defense cannot be overstated. … The importance of Hofmann Forest to the expanding mission platform of our military will only increase with the diversification and incorporation of unmanned aerial vehicles and other technological advancements. The loss of Hofmann Forest for these vital national training capabilities would have a drastic negative impact on readiness.”

Hofmann Forest was purchased by the North Carolina Forestry Foundation in 1934 (now named Natural Resources Foundation) and gifted in 1977 to the NCSU Endowment Fund for the benefit of the College of Natural Resources. It has primarily been used by the university as a research outpost and nature conservancy.

“The document in question was specifically put together for Hofmann Forest, LLC,” said Thomas H. Percival of Percival Land & Timber Consultants, Inc. “It is a document that was originated for internal purposes in early 2013 for use by Jerry Walker, as a Managing Member, and other members of the LLC in the process of their initial consideration of purchasing the property. The purpose of this document was to show Mr. Walker and other members the many different and synergistic aspects that Hofmann Forest possesses and its potential for various types of uses that have been identified over the years. As an example, the development plans in the document are renderings that were done many years ago by North Carolina State University as a general study and were not prepared by or for Hofmann Forest, LLC. Since this document was created, the LLC, under the guidance of Jerry Walker, has recognized the value of the Hofmann as a forest and has no plans to develop the property into a large commercial and residential community.”

The proceeds from the sale would be placed in an endowment benefiting NCSU’s College of Natural Resources, keeping with the intent of the original deed, according to the university endowment fund officials.